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Power integration crucial for Latin America

  • : Electricity
  • 24/10/29

Latin America expects a significant increase in regional electricity integration in 2025, with countries from the Andean region starting the approval process to integrate their grids.

The four countries that form the Andean Community (CAN) — Bolivia, Colombia, Ecuador and Peru — began working on integration seven years ago, finalizing agreements last May. The member countries have 24 months to incorporate commercial and regulatory rules to integrate grids into national legislation.

CAN secretary general Gonzalo Gutierrez said he was confident that the integrated system would be ready quickly. The next big piece — and one Gutierrez said is central to the region — is getting Chile to join the integrated system.

"The incorporation of Chile into the Andean integrated system is crucial," Gutierrez said at the annual meeting of the Latin American Energy Organization (Olade) in Asuncion, Paraguay.

The CAN integration is the third in the region after Central America, which includes six countries, and the Southern Cone Common Market (Mercosur) that includes Argentina, Brazil, Paraguay and Uruguay. Bolivia joined earlier this year but is not fully integrated into Mercosur systems.

Chile, if it were to join the Andean system, could serve as a link to Mercosur in the south. The Andean system, once operating, could connect to the Central America system through a Colombia-Panama link.

Authorities say that if an integrated system were in place already, it would have helped Ecuador avoid electricity rationing this year.

Andres Rebolledo, Olade executive secretary, said the region needs to focus on integration, infrastructure and diversification of grids for the energy transition and climate change.

"Ecuador is facing supply problems, but this year there have been six countries with some level of rationing. The interconnection and diversification of grids are the first solution," he said.

To the south, Uruguay's deputy industry minister Walter Verri said regional energy integration helped his country avoid rationing during the 2022-2023 drought.

"We had a drought that required us to import electricity [from Brazil]. Integration was essential," he said.

Verri said that while the Mercosur countries were integrated, lack of a regional vision hurts Latin America. "Latin America has excess power and we are under-utilizing our resources. We need to install infrastructure, but it is costly," he said.

Verri and Paraguay's deputy mining and energy minister, Mauricio Bejarano, also focused on Chile, saying that Mercosur needs to build power infrastructure that links it with Chile.


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24/12/13

Argentina’s renewables to get boost in 2025

Argentina’s renewables to get boost in 2025

New York, 13 December (Argus) — Argentina's renewables sector is looking at a rosier outlook in 2025 supported by new legislation and improved economic conditions. The country's renewable energy legislation, which was enacted in 2015 and expires at the end of 2025, stipulates a target of 20pc participation of renewables — excluding hydropower plants greater than 50MW — by the end of 2025. The country has not met annual targets, but there is growing confidence that it could come close to the goal by the end of next year. Renewable sources covered 15pc of the demand in October, according to the latest report from the energy secretariat, up from 13.5pc in July. The country added 373MW in new renewable generating capacity in the first three quarters of this year. The trade organization of wind energy CEA, estimates that 700MW in new solar and wind capacity will be added in 2025. A replacement renewable law focused primarily on investment, which the ruling Libertad Avanza party plans to submit in early 2025, and economic deregulation underway has the sector confident that financing for projects will soon be readily available, ushering in a boost in private investment for renewables. Ignacio Criado, a partner at the Tanoira Cassagne law firm who focuses on renewable energy, said he expects the country to be close to the 20pc renewable target by the end of 2025 and that there will be sustained growth in coming years. "More players are interested in the construction of renewable energy plants, with solar power in the north and wind in the south," said Criado. He said that the country's increasing economic stability and a government program providing incentives for large-scale investments, known as the RIGI, are fostering interest among investors. Argentina's economy, while still in tough shape, has improved in the year since president Javier Milei took office. While annualized inflation is still in triple digits, the monthly rate fell from 25.5pc in December 2023 to 2.4pc in November, according to the statistics agency. It was 112pc in the 12 months through November. The economy shrank by 3.4pc in the first half of the year and will contract by around 3pc the full year, but is expected to grow by 5pc in 2025, according to the IMF. During a 10 December address marking his first year in office, Milei said tax reform and elimination of exchange rate and customs controls would be forthcoming, adding to investment flows. RIGI boost The administration has already received requests under the RIGI mechanism for $11.8bn in investment, primarily in energy projects, Milei said. Among the projects in line for the RIGI is the state-owned YPF Luz's 305MW El Quemado solar plant, the first stage of which should be ready by 2026. In early December, the state's energy wholesaler, Cammesa, awarded a contract for eight new renewable projects with a combined capacity of 561MW. It received 31 proposals for a total of 1,639MW. Of the projects, 345MW were awarded to Genneia, the country's largest renewable company with more than 1GW in installed capacity, and 88MW to Australia's Fortescue for its Cerro Policia wind farm in the southern Rio Negro province. The energy will be used for its planned low-carbon hydrogen project. These projects should start coming on line from the end of 2025 in throughout 2026. As of October, Argentina had 6.56GW in installed renewable capacity, including 4.12GW in wind, up by 11.2pc from a year ago, 1.63GW in solar, up by 19.6pc, and 82MW in biogas, up by 5.4pc. It also had 524MW in small hydroelectric plants and 201MW in biomass, with no new capacity from a year earlier. Large-scale hydroelectric plants totalled 9.63GW, while thermal electric plants totalled 25.28GW and nuclear plants 1.75GW. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Norway's 500MW cables at risk if price link proved


24/12/13
24/12/13

Norway's 500MW cables at risk if price link proved

London, 13 December (Argus) — Norway will not replace the two oldest transmission cables between it and Denmark, with a combined capacity of 500MW, if the national transmission system operator (TSO) confirms they "harm the national power system", energy minister Terje Aasland told Argus . If the Skagerak 1 and 2 cables are found to contribute to "high prices", as seen this week, and additionally "reinforced negative price contagion", the minister explained, the government will not renew the cables. The minister's comments come as the ruling Labour party's programme committee — of which the minister is not a member — agreed to block extending or replacing the ageing cables as they approach the end of their operational lifetime. There has yet been no formal application to renew the Norwegian-Danish Skagerak 1 and 2 links, which the minister said means "there is nothing to say yes or no to" at the moment. Norwegian TSO Statnett is currently investigating the possible renewal and, alternatively, the effects of not renewing the link, the minister confirmed. Skagerak 1 and 2, commissioned in 1976 and 1977, respectively, are part of a trio of cables, including the 500MW Skagerak 3 interconnector connected in 1993, linking Norway's NO2 with Denmark's DK1 bidding area. By Daniel Craig Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EPA defends 'good neighbor' efficacy


24/12/11
24/12/11

EPA defends 'good neighbor' efficacy

Houston, 11 December (Argus) — The US Environmental Protection Agency (EPA) responded to concerns raised by the US Supreme Court in June by defending the efficacy of the "good neighbor" plan in reducing NOx emissions regardless of the number of participating states. The high court's concerns were over the issue of severability — that is, how effective the good neighbor plan would be in lowering ozone season NOx emissions if only some of the original 23 states participated. In other words, it is the question of whether the emissions limits placed on states as part of the Cross-State Air Pollution Rule (CSAPR) cap-and-trade program under the plan would have changed based on the number of participating states. In a notice published in the Federal Register on Tuesday, EPA rejected the idea that the effectiveness of the good neighbor plan — and as a result, the NOx emissions limits imposed on each state — would wane if the number of participating states changed. Instead, the agency said that its plan is "by design severable by state" because the NOx emissions limits are imposed on individual sources rather than the states themselves. Each participating state's emissions obligations depend on the number of obligated power plants, their emissions and the types of emissions reduction measures they already have in place. As a result, pausing the imposition of tighter NOx limits under the good neighbor plan in certain states does not affect the NOx limits imposed in other participating states, EPA said. In a similar vein, EPA addressed concerns that the larger version of the CSAPR Group 3 seasonal NOx allowance trading program established under the good neighbor plan would become more illiquid if it covered fewer states than planned, which could lead to a smaller supply of allowances and higher prices. Calling those concerns "unjustified", the agency said that states can withdraw their sources from a trading program by submitting their own ozone reduction plans. EPA also cited previous instances from past cross-state ozone programs where the number of participating states has changed, noting that there has been no evidence of allowance shortages. EPA also responded to concerns that it used an inconsistent methodology to determine emissions obligations for each source — including the emissions reduction strategies that could be used and their associated costs. The agency said it used a methodology that was "nearly identical to prior good neighbor rules" and considered NOx reduction technologies that have been in place "for decades throughout the US." The severability issue was raised by the Supreme Court in June, when it paused implementation of the good neighbor plan nationwide. The court majority said that EPA did not provide a sufficient explanation in response to public comments from states that highlighted those concerns — especially because, until the court issued its stay, only 10 states were participating in the good neighbor plan because of lower court stays. But in September, the US Court of Appeals for the DC Circuit allowed EPA to respond to the issue of severability, while it paused related litigation. EPA finalized the "good neighbor" plan last year to help downwind states meet the 2015 federal ozone standards. It imposed more rigorous CSAPR ozone season NOx emissions limits on more than 20 states and called for new NOx limits for industrial sources. Illiquidity has been persistent in the CSAPR market, depressing activity and keeping prices steady for almost a year because of uncertainty surrounding the numerous legal challenges against the plan. The ozone season runs from May-September each year. With plan halted for the time being, EPA has returned to less-stringent seasonal NOx budgets and reshuffled the remaining participating states into the Group 2 and new "expanded" Group 2 markets, leaving the Group 3 market empty. By Ida Balakrishna Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop 29 grids, storage pledge signatories released


24/12/11
24/12/11

Cop 29 grids, storage pledge signatories released

London, 11 December (Argus) — The final list of signatories for pledges on expanding energy storage and grid capacity taken at the UN Cop 29 climate summit, was released today, almost four weeks after the commitment was first finalised, with 58 countries out of almost 200 Cop parties taking part. Signatories commit to a collective goal of increasing electricity storage capacity to 1500GW by 2030, a sixfold increase from 2022. Another pledge is to add or refurbish 25mn km of grid infrastructure by 2030, and recognise the need for an additional 65mn km by 2040. Lack of firm, clean power generators to back up intermittent renewables is a major barrier to increasing renewable penetration, while distributed resources require large investments in power grids to transport electricity to consumers. The list of 58 signatory countries includes the so-called troika of Cop host countries the UAE, Azerbaijan and Brazil. The US and all other G7 member states are present, with the exception of France. Also absent among major economies are China and Russia, while Saudi Arabia spoke in support of the pledges during Cop but does not appear on the list of signatories. In comparison, almost 120 countries had signed a pledge to triple global renewable capacity double global energy efficiency by 2030 during the Cop 28 summit in Dubai last year. The grids and storage pledges were one of the centrepiece announcements made by the Azeri host, following on from the calls made in Dubai on renewable capacity and energy efficiency, but also on transitioning away from fossil fuels in energy systems. But divergences on mitigation — actions to cut greenhouse gas emissions — during the summit this year, meant that the completed pledge, as well as any other specific mentions of fuels and energy transition technologies, were not included in final outcome texts. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil's inflation accelerates to near 5pc in November


24/12/10
24/12/10

Brazil's inflation accelerates to near 5pc in November

Sao Paulo, 10 December (Argus) — Brazil's headline inflation accelerated to a 14-month high in November, led by gains in food and transportation, according to government statistics agency IBGE. The consumer price index (CPI) rose to an annual 4.87pc in November from 4.76pc in the previous month, IBGE said. Food and beverage costs rose by an annual 7.63pc in November, accounting for much of the monthly increase, following a 6.65pc annual gain in October. Beef costs increased by an annual 15.43pc in November following an 8.33pc annual gain for the prior month. Higher beef costs in the domestic market are related to the Brazilian real's depreciation to the US dollar, with the exchange rate falling to a record-low R6.11/$1 at the end of November. The stronger dollar leads producers to prefer exports over domestic sales. Beef prices rose by 8pc for the month alone. Soybean oil prices rose by 27.75pc over the year. Transportation costs, another major contributor to the monthly acceleration, rose by an annual 3.11pc in November after a 2.48pc gain in October. On a monthly basis, transportation costs rose by 0.89pc in November, reversing a contraction of 0.38pc in October. Housing costs rose by 4pc over the 12-month period. Brazil's central bank last month hiked its target rate to 11.25pc, its second increase off a low of 10.5pc between May and September, to try to head off a resurgence in inflation. It was at a cyclical peak of 13.75pc from August 2022 through July 2023 as it sought to tamp down the post-Covid-19 surge in inflation. Fuel prices rose by an annual 8.78pc in November after a 7.22pc gain in October. Motor fuel costs fell by 0.15pc in November compared with a 0.17pc drop in October — thanks to lower ethanol and gasoline prices. Diesel prices contracted by 2.25pc in the 12-month period. Power costs slowed to an annual 3.46pc in November following a 11.58pc gain in October. Electricity prices contracted by a monthly 6.27pc after a decrease in power tariffs on 1 November. Monthly inflation slowed to 0.39pc in November from 0.56pc in October. The central bank's inflation goal for 2024 is 3pc, with a margin of 1.5pc above or below. By Maria Frazatto and Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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